New Iranian MVNO Gets License

EghtesadOnline: FANAP ICT Company, owned by Pasargad Financial Group, has received license to operate as a Mobile Virtual Network Operator (MVNO).

News ID: ۷۴۲۳۴۸

24 June 2017

The government announced two years ago that companies seeking to work as virtual network service providers could register for MVNO licenses, with FANAP being one of the first applicants.

The company has now been granted a 5-year permit to deliver  services, local technology website ICTNA reported.

A MVNO is a wireless communications services provider that does not own the mobile network infrastructure through which it provides services to customers, but buys the necessary service from network operators, Financial Tribune reported.

FANAP has yet to distribute its SIM cards and launch pricing structures for calls, SMS and Internet as part of a push to keep up with the growing competition among virtual operators.

The Telecoms Ministry has so far licensed dozens of firms to offer both 'full' and 'light' services, meaning several new mobile Internet and telecom companies could compete with established operators like Mobile Communications of Iran (MCI), and MTN-Irancell.

Other operators available include the first licensed MVNO Shatel Mobile, and SamanTel, ApTel, AryanTel, Bistalk Mobile and BaharTel, among which some have begun selling SIM cards.

However, no foreign brands have yet entered the market which is based on Iran's current MVNO model used by the Communications Regulatory Authority (CRA).

This may be due to the rules of entry for firms wanting to work as MNVOs.

According to the rules for opening a new virtual mobile network, the main operators must offer nationwide coverage and have a contract with the MVNO for five years.

Operators must abide by CRA regulations and the MVNO must also be 51% owned by an Iranian national.